DaVita Inc.

What they do

DaVita operates outpatient dialysis centers (585 international centers serving ~94,500 patients as of Dec 2025) and provides dialysis and lab services in the U.S. Its U.S. integrated kidney care (IKC) segment serves 66,000 patients in risk-based arrangements. The company also offers ancillary services and invests in related ventures.

Revenue drivers

• U.S. dialysis & lab services — Largest segment; revenue per treatment was $415.87 in Q2 2026 (down $1.72 from Q1 2026) and year-to-date $416.71 vs $402.38 prior year. Treatments per day grew 1.09% sequentially. Payor mix, Medicare base rate increases, and commercial rates are key.
• International dialysis — As of Dec 2025, operates 585 centers in 14 countries serving ~94,500 patients. Contributes to revenue and patient growth but smaller than U.S. dialysis.
• U.S. integrated kidney care (IKC) — Serves 66,000 patients in risk-based integrated care arrangements and 9,400 in other arrangements as of Dec 2025. Focused on value-based care and slowing kidney disease progression.
• Other ancillary services — Includes ancillary services and investments outside the three primary segments. Not separately quantified in the excerpts provided.

Recent performance

For Q2 2026 (ended June 30), DaVita reported consolidated revenues of $3.554B, operating income of $579M (16.3% margin), net income of $265M, and diluted EPS of $4.02. Year-to-date six months 2026 net income was $463M ($6.86 per share), up from $362M ($4.57 per share) in 2025. The company repurchased 2.2 million shares at average $154.95 in Q2. Normalized non-acquired treatment growth was 0.3% YoY.

Strategy

DaVita aims to reimagine kidney care as more preventative, integrated, and personalized, improving outcomes at the lowest total cost. Strategic priorities include innovating in kidney dialysis, expanding home dialysis and integrated care, and maintaining strong payer relationships. The company also focuses on cost-saving initiatives and capital allocation, including share buybacks ($500M Term Loan B-2 incurred in Q2 2026 used partly to repay revolver).

Risks

• Government reimbursement changes — Medicare, Medicaid, and the One Big Beautiful Bill Act (OBBBA) could alter base rates or coverage, directly impacting the largest payer source for dialysis services.
• Commercial payor mix pressure — Profits concentrate in higher-paying commercial plans; downward pressure on rates, payor plan design restrictions, or loss of commercial patients could materially reduce revenue.
• Cybersecurity incident impact — A 2025 cybersecurity incident created operational disruption and may continue to cause costs or regulatory exposure; mentioned as a forward-looking risk.
• Supply chain and tariff risk — Evolving trade policies and tariffs could increase costs of critical clinical supplies and equipment, impacting margins and ability to provide home dialysis services.

Outlook

Management highlighted continued strategic focus on innovations in kidney dialysis. The forward-looking statements reference expectations around patient census, payor mix, government policy changes, and cost saving initiatives. They also note the impact of the OBBBA, trade policies, and labor market conditions. Normalized treatment growth in Q2 2026 was 0.3% year-over-year.